Global leader in digital currency asset management Grayscale has added Cardano (ADA) to its Digital Large Cap Fund. The company clarified that it sold some of the existing components of the trust. And used the proceeds to buy ADA. Thus, the coin of the largest blockchain platform is now the third largest holding of the fund with a share of 4.26%. The first two places belong to the leading cryptocurrencies – Bitcoin and Ethereum.
The ADA purchase was made by the company as part of the quarterly rebalancing of the fund. The share of Bitcoin in the Digital Large Cap Fund was previously 79.8%, but now it is 67.47%. At the same time, the second largest holding of the Ethereum fund increased from 17.5% to 25.39%. On his Twitter profile, Grayscale notes that the adjustment to the Digital Large Cap Fund’s portfolio came about by selling certain amounts of existing fund components in proportion to their respective weights and using cash receipts.
Launched in February 2018, the Digital Large Cap Fund makes passive investments in the most popular cryptocurrencies.
According to the latest data, investors have invested $ 356.7 million in it. The total volume of assets in the company’s funds is $ 30.4 billion.
Recall that at the end of January, Grayscale Investments filed applications for the registration of six trusts. They based on Aave, Polkadot, Cosmos, Monero, EOS and Cardano.
In June, the company added 13 additional assets to the list. On the basis of which it can offer new investment funds to clients in the future.
Components of the Grayscale Digital Large Cap Fund portfolio
At the moment, the fund’s portfolio consists of 67.47% Bitcoin (BTC), 25.39% Ethereum (ETH), 4.26% Cardano (ADA), 1.03% Bitcoin Cash (BCH), 0.99% Litecoin ( LTC) and 0.86% Chainlink (LINK). Moreover, each share of the fund is 0.00044919 Bitcoin (BTC), 0.00263059 Ethereum (ETH), 0.71069603 Cardano (ADA), 0.0046159 Bitcoin Cash (BCH), 0.00160755 Litecoin (LTC) and 0.01053027 Chainlink.
Grayscale emphasizes that the fund does not generate income and regularly distributes components to pay for running costs. Thus, the number of fund components represented by each share gradually decreases over time.
Edward McGee said the company delighted to see Cardano in its Digital Large Cap Fund portfolio. Grayscale is now working to ensure that this diversified fund can safely store assets that collectively represent 70% of the total digital asset market. A fund is an investment vehicle, the shares of which listed in the name of the investor. This provides a familiar structure for financial and tax advisors. And an easy transfer to beneficiaries in accordance with real estate laws. In addition, shares can be held in certain IRAs, Roth IRAs and other brokerage and investor accounts.
“Digital currencies represent a unique opportunity for investors to diversify their portfolios and at Grayscale we are proud to provide our investors with access to leading digital currencies through regulated, familiar product offerings”.